KUALA LUMPUR, Aug 23 — Eastern and Oriental Bhd (E&O) has returned to the black in the first quarter for the financial year ending March 31, 2024 (1Q FY2024) with a net profit of RM32.95 million against a net loss of RM1.65 million in 1Q FY2023 due to enhanced revenue and unrealised foreign exchange gain.

In a filing with Bursa Malaysia today, the property developer said its revenue rose by 11.6 per cent to RM85.41 million from RM76.55 million a year ago, mainly attributed to the sales of Arica on Andaman Island.

The increase in revenue was attributed to the properties segment which registered a RM3.6 million increase and a RM5.0 million rise in the hospitality segment, it said.

E&O managing director Kok Tuck Cheong said the strong take-up rates of two newly launched properties on Andaman Island, namely The Meg and Arica, reflect its track record and branding as a lifestyle developer.

“Likewise, our hotels in Malaysia and London are experiencing higher occupancy rates, coupled with a higher demand for our banquet services for corporate and private events,” he said at the 1Q FY2024 results briefing here today.

He also anticipates the Malaysian property market to improve, especially for strategic locations, coupled with a steady recovery in the tourism sector, driven by a rise in hotel bookings.

“We are cautiously optimistic that we will be able to execute our plans and strategies to bring the group to greater heights with the launch of our new product offerings, which is already in the pipeline and the launches expected in the 4Q FY2024,” he said.

Meanwhile, executive chairman Datuk Tee Eng Ho said the current total gross development value for its ongoing projects stands at RM2.47 billion with five projects, namely The Meg, Conlay, The Peak, Arica and Avira Phase D.

“No dividend was declared for 1Q FY2024 and we do not foresee any dividend declaration this year as we focused on the Andaman Island project,” he said, adding that the company plans to launch a mix of landed and serviced apartment units in Phase 1 of Andaman Island in the third and fourth quarter of the financial year. — Bernama